In a desperate effort to sanitise the electricity sector, the Federal Government of Nigeria (FGN), has transferred its 40 per cent shareholding in electricity distribution companies (DisCos) from the Bureau of Public Enterprises (BPE) to the Ministry of Finance (MOFI), PrimeStar News has authoritatively learnt.
This is revealed in a letter written and signed by the Minister of Finance and directed to the Board of Directors of DisCos in Nigeria. The letter and other documents attached to this story.
The letter PrimeStar News exclusively obtained dated January 10, 2024, is titled, “Termination of Power of Attorney Donated to the Bureau of Public Enterprises and Vesting of Equity Interest of the Federal Government of Nigeria in the Ministry of Finance Incorporated.”
The letter ordered the board of directors of the MOFI to assume ownership, control, and management of all equity holding of the Federal Government of Nigeria in Nigeria’s 11 DisCos and directing MOFI to “Assume ownership, control, and management of all equity holding of the Federal Government. of Nigeria, as contemplated and provided for by law and/or any contract; and issue all appropriate notices, instruments, and documents which are required to give effect to this directive.”
Before this Order, under the statutory mandate in Section 9 of the now-repealed Electric Power Sector Reform Act, 2005, the BPE was the holder of record of the equity interests of the FG in DisCos and it had also nominated various persons to be directors in DisCos and managed the implementation of the various rights and obligations of the FGN in the company.
According to the letter quoting the MOFI CEO, Armstrong Takang, “The BPE nominee director on the board of directors of this Company is withdrawn with immediate effect and share certificates of the Company issued in the name of the BPE are to be immediately withdrawn and cancelled. A new share certificate for all outstanding shares of the FGN in the Company is to be issued in the name of “MINISTRY OF FINANCE INCORPORATED. All minutes of Board meetings, current management operational reports, extant strategic business and operating plans, management accounts and audited financial statements going back to the 2021, 2022 and 2023 financial years should be immediately delivered to MOFI”.
Takang said he expects DisCos to “Immediately take on board and implement these decisions.”
